Federal government steps in with potential new AI, data center legislation
The U.S. House passed the "Ratepayer Protection Act" requiring states to consider data centers covering their electricity costs, although Minnesota already has a similar law. Minnesota state and local governments are also addressing AI and data center impacts, with numerous cities enacting moratoriums on new facilities. Lawmakers are also working on federal and state AI safety legislation.
The U.S. House of Representatives recently passed the "Ratepayer Protection Act," aiming to mandate states consider requiring large-load customers, such as data centers, to cover their associated electricity costs. However, Minnesota has already implemented similar legislation in 2025, which applies to facilities like Meta's hyperscale data center in Rosemount. Xcel Energy spokesperson Kevin Coss affirmed that such large customers are responsible for all upgrade costs, ensuring residential customers are not burdened.
Minnesota Senator Erin Maye Quade, DFL-Apple Valley, while acknowledging the federal bill as a good start, highlighted its deficiencies in addressing environmental impacts such as heat islands, water, noise, and light pollution. She referenced issues like a Meta data center allegedly impacting local water quality, emphasizing the need for federal standards to protect ratepayers and the environment from the broader consequences of data center operations.
Local governments in Minnesota have also taken proactive measures, with at least 22 cities and counties enacting moratoriums on new hyperscale data centers until 2027. U.S. Rep. Tom Emmer, House Majority Whip for Minnesota’s 6th Congressional District, supported the federal act, stressing the importance of local control. Concurrently, U.S. Senator Amy Klobuchar is collaborating with Republican Senate Majority Leader John Thune on a federal AI safety bill framework, which would require developers to test models for safety and report imminent risks.
These legislative efforts at both federal and state levels are set against a backdrop of escalating national debate regarding AI's potential threats and benefits. Minnesota has independently adopted AI-related regulations, including banning AI nudification technology and prohibiting AI use in certain insurance denials. Senator Maye Quade advocates for comprehensive federal action on AI, despite concerns about potentially ceding governance to AI companies.